SIBUR's Tobolsk 500,000 PP plant to turn Russia into PP exporter

Russian petrochemicals producer Sibur has officially opened its Tobolsk-Polymer complex, the company said Tuesday. The launch of the facility will make Russia a net exporter of basic polypropylene grades.

The plant is an integrated facility with a 500,000 mt/year polypropylene production line and a 510,000 mt/year propane dehydrogenation, which will supply feedstock propylene to the first unit.

Feedstock propane for the PDH unit will be supplied from the company's Tobolsk-Neftekhim, located nearby, Sibur said. Construction works at the PP unit were completed at the end of March and trial production started in May.

Current polypropylene production in Russia falls short of the country's needs, with a deficit estimated last year at around 220,000 mt/year, the company said. As a result, the new production facility will create excess supply, which is expected to be directed to international markets.

However, the company expects domestic demand for polypropylene to grow by an average of 4.2%/year to bring the PP per capita consumption closer in line with levels in other developed countries. The main drivers for the growth will be the automotive industry, construction, housing and utilities, the company said.

In addition to the PP import substitution, the new Tobolsk plant will also provide an outlet for associated petroleum gas, which often has to be flared for the lack of processing facilities.

‘‘Sibur enables oil and gas producers to sell their by-products without having to build their own processing capacities. The company consistently invests in APG processing and transportation and fractionation of light hydrocarbons,’‘ said the company's chairman, Leonid Mikhelson.

Total investments into the project are estimated at Rb60 billion ($1.86 billion).